Welcome Finance

Insomniac666

Probably the best thing I've ever heard, talking to in-laws who has a loan with Welcome, she had a phone call off them, saying that she would basically be better off having a bank loan and paying them off as she would get a better rate....

how far away are they from total closure?

bargainbetty

They aren't doing well, but remember this:

Their loans often have all the interest lumped on the front, which means that if she did take out a loan to clear the detb with them, she would be paying interest on the interest.... unless they are will to offer her a full and final deal (sit down with a calculator and see what works) ignore them.

They just want to get as much money in as possible, because otherwise they are going to start selling debts on for pennies in the pound - the vultures are finally the ones being circled!

Good luck x

Insomniac666

She has no intention of leaing them yet, her credit is maxed so doesn't want to add more credit applications to her name. I told her wait and watch them sell off for pennies like you said then see if you can negotiate settlement figures.

fermi

They appear to be very very very desperate.

They approached another poster here out of the blue to offer a full and final settlement on a debt that hadn't even been defaulted.

spongebobfancypants

i settled with them at 50% of the outstanding balance as they are desperate to claw back as many of their accounts with them being in trouble!

it was 20 months early, no late or missed payments, shows how desperate they are!

Mikeone

Hi guys

What's the situation with Welcome and closure? I notice you say that they're in trouble, but its very difficult to find out more online as the cloud of complaints and horror stories is too dense to sift through!

I've got a few quid outstanding with them (not on default though) and was hoping to make settlement some time in the next couple of months when I get a bonus from work.

Any info or links would be much appreciated :money:

DarkConvict

Welcome finance lend to people in the sub-prime market, high risk.

This makes welcome finance a sub-prime borrower as they borrow money from others to lend to there customers. Due to the economy WF find it hard to get credit so hard to lend money. If they don't lend money they don't make profits, and existing overhead costs push them towards a loss.

I am not aware of them going bust, but i am not sure if they will continue to operate. If they do close and go into liquidisation then the administrators will try and claim in as much money as possible via F&F offers. Those that don't accept offers will have the loans sold to other companies or debts already defaulted to debt collectors.

Correct me if i am totally wrong :P

Mikeone

Cheers DC

I knew they were sub-prime chasers, but I wondered if they were in particular difficulties. Hopefully I'll be able to sever my relationship with them very soon anyway. I'd sooner be rid of them ASAP than wait to see if I can squeeze any cash off the total with a F&F.

Thanks again

:beer:

DVardysShadow

Insomniac666 wrote: »

She has no intention of leaing them yet, her credit is maxed so doesn't want to add more credit applications to her name. I told her wait and watch them sell off for pennies like you said then see if you can negotiate settlement figures.

Her debt will only be sold off for pennies if she defaults. If she has not defaulted, her loan will be part of a quite high value portfolio. Think 80 - 90%. Whoever has that portfolio will then be reluctant to let the loan go to F&F for less than full value.

The conclusion is if you want to settle on an undefaulted Welcome loan, now must be the time to negotiate so that you get the benefit of the discount Welcome would need to offer to sell on a loan portfolio. Welcome may prefer to settle with customers direct, rather than go to the market, because this could prevent the scale of any difficulties they are suffering entering the public domain.

Mikeone

DVardysShadow wrote: »

The conclusion is if you want to settle on an undefaulted Welcome loan, now must be the time to negotiate so that you get the benefit of the discount Welcome would need to offer to sell on a loan portfolio. Welcome may prefer to settle with customers direct, rather than go to the market, because this could prevent the scale of any difficulties they are suffering entering the public domain.

Good tip. Cheers!

fermi

Explains everything.......

http://www.credittoday.co.uk/news/news-item.cfm?news=1447

Cattles to collect out Welcome - 16/12/2009

Troubled lender Cattles is to focus on collecting out existing loans from its main business Welcome Financial Services after a business plan for Welcome's future failed to satisfy creditors.

The lender confirmed this morning that the board was unable to recommend a business plan to its creditors which would allow Welcome to lend to existing or new customers.

The board has now recommended a plan which will focus on collecting Welcome’s book of customer loans. It is envisaged that this collection of the Welcome loan book could take two to three years and, during this period, the group’s cost base will contract to reflect the reducing size of the book.